3-month gap breaks series of deductions

In the case of Fulton v Bear Scotland Limited, the Employment Appeal Tribunal has confirmed that a gap of more than 3 months between non-payments or under payments of wages breaks the “series” of deductions for the purpose of an unlawful deduction from wages claim. This EAT decision is the latest in the long-running saga concerning holiday pay. The EAT previously decided that non-guaranteed overtime must be taken into account when calculating holiday pay. The EAT also held that a gap of more than 3 months between two deductions breaks the “series” of deductions for the purposes of an unlawful deduction from wages claim. The case then returned to the Employment Tribunal and then to the EAT again in these current proceedings. The EAT decided that the previous ruling on the 3-month gap point was part of the EAT’s previous binding authority. The decision therefore stood and is therefore authority for the fact that a 3-month gap between non-payments or under payments of wages breaks the “series” of deductions for the purposes of an unlawful deduction from wages claim.

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